Issued by: Department for Energy Security and Net Zero, HM Treasury, and North Sea Transition Authority

• The Energy Secretary has agreed that the regulator can grant consent for gas to be produced at the licensed Jackdaw field

• The project will start to supply gas to British homes and businesses from as early as the end of this month, helping heat millions of homes and protecting hundreds of jobs

• New Energy Wealth Fund to be established by the Chancellor with a £2 billion downpayment to reinvest oil and gas revenues into the climate transition

Jackdaw will start to supply gas to British homes and businesses from the end of this month, after the Energy Secretary agreed that the regulator can grant consent for gas to be produced at the field.

The Jackdaw decision is expected to increase domestic gas production by around 6% at its peak – supporting the UK’s gas supply over its lifespan of up to 11 years, boosting our energy security, protecting hundreds of jobs and adding an estimated £2.9 billion to the UK economy.

Recent events in the Middle East have triggered global energy shocks and pushed up bills for families across the country. At a time of global instability, homegrown energy can be a source of national strength.

The Chancellor is also announcing today the establishment of a new Energy Wealth Fund, which will use tax revenues from North Sea oil and gas to invest in renewable and low carbon energy projects and support the green transition. Reflecting our commitment to the North Sea, this will start with an initial £2 billion injection of funding, with future revenues from the North Sea flowing into the fund over time.

The announcement comes ahead of the Budget, which will set out the government’s plan to deliver good growth in every postcode. By reinvesting Britain’s energy wealth in renewable and low carbon energy infrastructure, the Fund will unlock investment, back the industries of the future and create skilled jobs across Scotland and the UK.

This investment in renewable energy will substantially delink gas and electricity by the end of this Parliament. By investing in and building more renewable and low carbon power, gas will set the price of electricity less often, helping end Britain’s exposure to volatile international gas markets and help get bills down for good in the long term.

The Energy Secretary assessed among other points, that the Jackdaw project will not prevent the UK from being able to meet its legally binding limits on carbon emissions and achieve net-zero by 2050.

The heatwaves and extreme weather events experienced this year highlighted the importance of tackling the climate crisis. The government remains committed to the green transition and net zero – moving away from fossil fuels and towards renewable and nuclear energy. But even on the path to net zero, the UK will still require oil and gas as part of our energy needs for decades to come.

The decision is consistent with the government’s manifesto commitment not to issue any new licences to explore new fields while managing existing fields for the entirety of their lifespan. The Jackdaw gas field is already licensed and the North Sea Transition Authority’s decision to grant consent now gives the developer the green light to begin operations at the field.

It follows the Supreme Court’s ruling on the Finch case in 2024, which means North Sea operators are now required to consider the impact of burning the extracted oil and gas in environmental impact assessments. This meant the Energy Secretary had to consider a new environmental framework alongside all relevant factors in the case, including responses to the public consultation.

Energy Secretary Miatta Fahnbulleh said:

"Following careful consideration of all relevant factors I have agreed that the regulator can grant consent for gas to be produced at Jackdaw, which will begin to supply the UK with gas from this winter thanks to the highly skilled and vital North Sea workers.

"This decision will support the country’s energy security with homegrown gas this winter and help minimise the UK’s use of imported higher emission fuels as we continue our transition to renewables and nuclear.

"The decision is compatible with our legally binding climate commitments, and we remain resolute in ending new licences for oil and gas and achieving net zero by 2050."

Prime Minister Andy Burnham said:

"I welcome the Energy Secretary’s decision, which will protect hundreds of jobs and help keep millions of homes warm this winter. At a time when people are really struggling, it’s right that we look in a responsible way at maximising the existing energy reserves we have in Britain that could help.

"We’re committed to moving towards renewable energy and reaching net zero by 2050. But even on our ambitious climate path, we’ll still require oil and gas as part of our energy needs for decades to come. That’s why we’re taking a pragmatic approach to the North Sea. We’re also establishing a new Energy Wealth Fund to invest in renewable energy, support the green transition and help reduce energy bills over the long-term.

"Our approach will ensure we can boost our energy security, back British workers, ringfence future North Sea proceeds to speed up the green transition, hit our ambitious climate targets and - crucially - bring down bills."

Chancellor of the Exchequer John Healey said:

"I want Britain’s energy wealth to spark a new wave of clean power to work for the British people.

"Since North Sea gas and oil were discovered decades ago, the benefit of our existing nation’s natural resources have not been turned into the long-term investment our country needs.

"Through our new Energy Wealth Fund, we will invest in the clean energy industries of the future, creating jobs, driving growth and strengthening Britain’s energy security."

Secretary of State for Scotland Douglas Alexander said:

"This decision to approve Jackdaw is a win for Aberdeen, a win for Scottish workers and a win for Britain’s energy security. The North East has helped power the country for half a century, and will continue to do so for decades to come.

"This will harness the homegrown skills and assets we have in Scotland and right across the UK in a boost for the economy, as we continue to invest in and grow clean energy resources, and work towards the transition."

Stuart Payne, Chief Executive of the North Sea Transition Authority (NSTA) said:

"After robust scrutiny we have today granted consent for the Jackdaw Field development which allows the owners to proceed with their project and produce gas from the field upon completion of development work.

"This project will support the UK’s energy security by providing domestically produced gas, generate tax revenues, safeguard supply chain jobs, use existing infrastructure, and have an emissions intensity well below the UK average."

The Energy Wealth Fund will support investment in the renewable and low carbon energy industries that will power Britain’s future. It will help ensure more value from Britain’s energy resources is invested for the long term, supporting the green transition and creating a lasting national asset for future generations.

Alongside supporting the North Sea oil and gas sector, the government will continue to invest in the new energy industries that will support Scotland’s long-term jobs and prosperity. Since 2024, the UK has seen more than £100 billion of investment in renewable and low carbon energy.

Most recently, Sumitomo announced the opening of a £350 million into a cable factory at the Port of Nigg earlier this week. And SSE yesterday confirmed that 400 skilled jobs will be supported across Scotland through its new supply chain contracts for the Berwick Bank B offshore wind farm.

The government is taking a pragmatic approach to the North Sea that will support existing oil and gas production and back the highly skilled workforce as opportunities grow in renewables and wider sectors.

As announced last year [https://tinyurl.com/35jzfmv7], new Transitional Energy Certificates will allow for some oil and gas production in already-explored areas that are near licensed fields, linked via a tieback – ensuring existing fields can remain economically viable.

The government has therefore confirmed today that it is asking the regulator to consider urgent cases that could benefit from similar measures now, before legislation on these new certificates is in place. This will ensure the sector can support existing oil and gas fields, while still preventing exploration in new unlicensed areas.

It comes as discussions with industry leaders begin on a refresh of the North Sea Transition Deal to ensure domestic oil and gas production continues to benefit the UK and build the energy industries of the future. First agreed in 2021, the deal aims to provide a clear path for the industry to support the UK in reaching net-zero carbon emissions by 2050, while protecting jobs and supporting energy security.

The changing nature of the North Sea basin also opens up new opportunities to expand the UK’s decommissioning sector – which is expected to support up to 25,000 skilled jobs over the next decade and attract up to £25.6 billion in investment, according to independent analysis.

To help unlock this potential, the government has launched a consultation on new guidance to support decommissioning of complex infrastructure. The government has also formally asked Shell to submit their Brent decommissioning programme for the Energy Secretary to consider, with the aim to unblock a longstanding decision process that has been under review since 2017.

Notes to editors

The Energy Secretary’s full decision document agreeing to the regulator granting consent for the production of gas at the licensed Jackdaw field is available here: Jackdaw Field Development [https://tinyurl.com/nrrakcbj].

The announcement from the North Sea Transition Authority is here: NSTA grants consent for Jackdaw [https://tinyurl.com/3ru4w396].

The developer estimates that Jackdaw will create 27 new direct jobs and safeguard 273 existing jobs that would otherwise be lost. The developer also estimates that the project will add around £2.9 billion to the UK economy.

Over its lifetime, Jackdaw is estimated to produce gas with an energy equivalent to around 40 million barrels of oil.

The UK’s gas supply comes from a range of sources: 42% is sourced from the UK continental shelf; Norway’s continental shelf provides 37%; LNG accounts for 20%; and Interconnectors supply 1% (figures calculated from a 5-year average between 2021 to 2025 [https://tinyurl.com/2s4eecze].

A licence provides exclusivity over an area for oil and gas exploration and production, but does not, on its own, allow development to proceed.

A consent is a separate approval required before a specific project can move ahead. The North Sea Transition Authority decides whether to grant consent, but can only do so if the Secretary of State agrees, on the basis of an environmental impact assessment under the offshore EIA regulatory regime.

Following the Supreme Court’s ruling on the Finch case in 2024, the government acted decisively last year to publish new guidance for the oil and gas sector on how environmental impacts of downstream emissions from oil and gas production should be assessed and opened-up the window for applications.

Following this guidance, the developer, Adura, submitted further information on the Jackdaw project, which has been subject to public notice periods. The Energy Secretary has considered all relevant information in the round in reaching the decision to agree that the regulator can grant consent.

The government’s manifesto committed to not revoke existing licences and to manage existing fields for the entirety of their lifespan, while not issuing new licences to explore new fields.

Independent analysis from Redwater Insights [https://tinyurl.com/ye3bnhms] shows that the UK’s decommissioning sector could support up to 25,000 skilled jobs over the next decade and attract up to £25.6 billion in investment.

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